XRP Jumps as Bullish 'Golden Cross' Pattern Appears in Price Chart

It's often a bullish indicator when the the 50-week moving average crosses above the 100-week, but traders can get trapped on the wrong side of the market.

AccessTimeIconMar 16, 2021 at 3:54 p.m. UTC
Updated Sep 14, 2021 at 12:27 p.m. UTC

XRP, the digital token used in Ripple Labs’ payments network, was outperforming bitcoin and other major cryptocurrencies on Tuesday, with a longer-duration technical indicator flashing a bullish signal. 

The token’s price was around 48 cents at press time, up 9% on a 24-hour basis, based on CoinDesk 20 data. Other prominent cryptocurrencies such as bitcoin, ether, chainlink and litecoin were nursing moderate losses. 

XRP's 50-week moving average crossed above the 100-week moving average (MA) earlier this month, confirming a pattern known in price charts as a “golden crossover” – a long-term bullish indicator. 

Traders and chart-reading analysts often see the golden cross as a sign of a definitive uptrend. As such, the latest cross may attract stronger buying pressure from trend-following traders, leading to continued price gains.

CoinDesk - Unknown

A "golden cross" appears in the XRP price chart.

XRP’s weekly chart shows major resistance at 80 cents. The area has capped gains multiple times since September 2018. 

Readers, however, should note that the golden cross isn't the Holy Grail of the market and often traps buyers on the wrong side of the markets. That’s because moving averages follow prices. By the time the crossover happens, an asset is sometimes overbought and due for a correction. 

XRP, however, looks far from being overbought, with the daily and weekly chart relative strength indices hovering well below 70. 

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC